CONSUMER BEHAVIOR

(UNIT II)
MEANING AND DEFINITION OF
CONSUMER BEHAVIOUR
• Consumer Behavior is the study of individual or groups and the
processes that are used to select and dispose of product or services in
order to satisfy the needs and wants.
 AUTHOR’S DEFINITION
• According to Engel, • According to Louden and Bitta,
Blackwell, and Mansard, ‘consumer behaviour is the
‘consumer behaviour is the decision process and physical
actions and decision activity, which individuals
processes of people who engage in when evaluating,
purchase goods and services acquiring, using or disposing
for personal consumption’. of goods and services’.
IMPORTANCE OF CONSUMER
BEHAVIOUR`
Marketers can understand the expectation of the consumers

Kind of products liked by the consumers

In order to find success for the existing as well as launching of new

products

Application of Marketing efforts according to the taste and

preferences of the consumers.

To create and retain the existing customers

 FACTORS THAT INFLUENCES CONSUMER BEHAVIOUR

• MARKETING MIX FACTORS

• PERSONAL FACTORS
• PSYCHOLOGICAL FACTORS
• SOCIAL FACTORS
• CULTURAL FACTORS
 MARKETING MIX FACTORS
Each and every element of the marketing mix such as Product, Pricing,
Place and Promotion has a direct or indirect impact on the buying
process of the consumers
(A) PRODUCT THAT INFLUENCES ON THE
CONSUMER BEHAVIOUR
SPECIAL FEATURES/
CHARACTERISTICS
OF THE PRODUCT

COLOR

DESIGN OR
PHYSICAL
APPEARANCE

SIZE
 (B) PRICING THAT INFLUENCES THE
CONSUMER BEHAVIOUR
The price of the product fixed by the marketer has a great impact on
the buying behaviour of the consumers . Marketers should consider the
price sensitivity of target consumers.
 (C)PLACE THAT INFLUENCE THE CONSUMER
BEHAVIOUR
The channel of distribution or Place affect the buying behaviour of the
consumers . Hence the marketing firms should distribute the product at
the right place where maximum number of consumer buy the product.
 (D) PROMOTION THAT INFLUENCE THE
CONSUMER BEHAVIOUR
• Promotion Mix such as advertisement, personal selling , publicity and
public relations have a great impact on the buying behaviour of the
consumers. Marketing companies should select the appropriate
promotion mix according to the nature of the target customers.
 PERSONAL FACTORS

Personal factors such as age, gender, AGE: GENDER:

occupation, education & life style
affect the buying behavior of the Young consumers prefer to buy Male consumers usually select Blue,
consumers. trendy products. Black Brown colors

EDUCATION:
People with high education spends LIFE STYLE/STATUS IN THE SOCIETY
money on Books, Personal Care
People with high income used to buy
Products whereas people with less or
luxury car, watch and premium
no education spend less money on
clothes etc.
books and more on Personal
Grooming Products.
 PSYCHOLOGICAL FACTORS

Psychological factors such as LEARNING,ATTITUDE,MOTIVE, CONFIDENCE & BELIEF

have impact on the buying behaviour of the consumers.

LEARNING: There may be change in the behaviour of the consumers by getting

experience and information. When a consumer buys a new product or brand and get
satisfied with the product, he or she may buy the same product in the next time.

ATTITUDE: Consumers may have positive or negative or neutral attitude towards

certain products, which influences the buying behaviour of the consumers.
 PSYCHOLOGICAL FACTORS

MOTIVE : Sometime,
consumers may not have CONFIDENCE: It is an
BELIEFS: Belief is a
any needs and wants, but important factor which
thought that a person
the inner drive that determines the
holds about something. It
motivates a person to act willingness of consumers
may be based on
or behave in a certain to buy. A high level of
knowledge, trust and faith.
manner. A marketer must confidence causes more
Consumers may have a
identify the buying demand for the product .
certain belief about
motives of the target Therefore it is the duty of
certain products/brands
customers and influence the marketers to build
which leads to brand
them to act positively confidence among the
image.
towards the marketed consumers.
products.
 SOCIAL FACTORS

The social factors such as reference groups, family & friends and
social status affects the buying behaviour.

Reference groups: It is a small group of people such as colleagues at

workplace, friends circle , neighbours, family members and so on.

Family The family is the main reference group that may influence the
consumer behaviour.
 Roles and status
Roles and status: A person performs certain roles in a particular
group such as organization or club. One may perform the role of a
vice president in a firm and another one may perform the role of
marketing manager. The vice president may enjoy higher status in
the organization as compared to the marketing manager. People
may purchase the products according to their roles and status.
 CULTURAL FACTORS
There is a major influence of cultural factors on consumer decision
process. Consumers live in a complex social and cultural environment.
The types of products and services they buy can be influenced by the
overall cultural context in which they grow up to become individuals.
Cultural factors includes religion, tradition, cast and moral values.
 TYPES OF BUYING BEHAVIOUR

Buying decision
behaviour differs from
person to person , • Complex Buying Behaviour
place to place and • Dissonance Reducing Buying
from product to
Behaviour
product. Buying
Decision Behaviour • Habitual Buying Behaviour
has been classified
• Variety Seeking Buying Behaviour
into four categories.
They are as follows.
 TWO IMPORTANT PARAMETERS

INVOLVEMENT BRAND DIFFERENCE

HIGH HIGH
LOW LOW
 Complex Buying Behaviour

In Complex buying behaviour, consumer shows a high involvement in the

purchase and also there are huge differences in brands.

When the product is high priced, infrequently purchased (one time purchase) and
risky and self expressive. Consumers willing to pay premium price .

Buyer passes through a learning process, develops beliefs and attitude

Example: Laptop, car etc.

 Dissonance Reducing Buying Behaviour

Consumers are highly involved in the purchase and they have little differences among the
brands.

When the product is high priced, infrequently purchased (one time purchase) and risky
and self expressive.

Good Price and Convenience purchase is preferred. Buyer undergoes learning process and
buys product relatively quickly

Example: Floor tiles, carpets etc.

 Habitual Buying Behaviour

Consumers have low involvement in the purchase and also little differences
among the brands.

Consumers used to buy the product regularly (frequently) without having any
brand loyalty. These are low cost.

It supports passive learning process.

Price and sales promotion are the tools

 Variety Seeking Buying Behaviour

Consumers have high involvement in the purchase and major differences among
the brands.

Brand switching is observed but not due to dissatisfaction but to avoid boredom
and for the sake of variety.

It also support passive learning

Example: Biscuits, Rusks etc. Each brand gives a different variety.

STAGES OF THE BUYING DECISION PROCESS
NEED/PROBLEM
RECOGNITION

INFORMATION SEARCH

EVALUATION OF
ALTERNATIVES

PURCHASE DECISION

POST PURCHASE
BEHAVIOR
 Stage 1 Need or Problem Recognition
• It is the first stage in the buying decision process
• Buyer recognizes a need or a problem
• Need can be from Internal Stimuli Or External Stimuli
• Marketers should try to identify and trigger the stimuli and to create
an interest into their products or services which can be converted into
purchase

Internal Stimuli External Stimuli

 Stage 2 Information Search
Once the need or problem is recognized, consumer has to search for
more information regarding the product. Information can be obtained
from family and friends, through mass media like magazines,
Newspapers, TV or by browsing technology websites.
 Stage 3: Evaluation of Alternatives
• In the case of buying a product frequently, the consumer may not
think twice about the brand
• But in the case of high involvement purchase like a laptop or
smartphone, consumer tries to evaluate all the brands on the basis of
various benefit of attributes
 Stage 4 : Purchase Decision
• Once a consumer has made up his mind about buying a certain
product or service, he needs to decide the brand, the retailer, the
quantity, purchase mode and the timing of the purchase.
• If buying an expensive product, besides the brand and the retailer, the
consumer is more interested in knowing about the mode of payment
as to whether it can be made through credit card or debit card or
through consumer finance.
 Stage 5 : Post Purchase Behaviour

Post purchase behavior has long been an important issue for every marketer. After
purchasing the product, the consumer use and evaluate the product. If the
customers are happy with the product quality and features, the company can get a
long term committed customer otherwise the consumers can switch the brand and
can discontinue the usage of this product.

Besides the post purchase use of the product, the disposal of the product is also
important for the socially responsible companies.